Blockchain Explained-banks and

Blockchain Explained

Blockchain Explained

Blockchain Explained – Once you have entered the realm of Cryptocurrency, the term blockchain would definitely have come up. In order to truly understand how cryptocurrency works, it must be explored in detail.

You need to have a true appreciation of the concept and how it works in order to trade in and use the Cryptocurrency market. You may find blockchain meaning a bit complex, but we are here to help you understand what you need to know.

What Is A Blockchain?

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On our page, we try to offer user-friendly explanations for all financial topics. As such the blockchain definition is as follows:
Simply, put a blockchain is a chunk of digital information that is stored in the cryptocurrency public database.You may wonder what information is stored in those blocks. The information stored in the blocks of a blockchain can be divided into three categories.

They are as follows:

Transactional Details-
A block will contain the date, time, and the amount of the transaction.

Transaction Participants-
Blocks will also store who participated in the transaction. However, it will not reveal your name. There will be a digital signature attached to the transaction. This digital signature is unique and will only be visible to the parties involved.

Distinguishing Markers-

Blocks will also have information that allows one block to be distinguished from another. Each block has a unique code. This code is called a hash. Special algorithms create cryptographic codes.

How Does Blockchain Work?

If you want blockchain explained, you have come to the right place!
There is a reason why the portions of data are called blocks. They are constantly being added together on the blockchain (building blocks if you would).

However, there is a process:


Firstly, there must be a transaction. Let’s say you have decided to make a purchase with your bitcoin. This transaction will be bundled together with other transactions from other users into a block.

Transaction Verification

Well, this is a predictable step. You are already used to having any kind of financial transaction verified. The aforementioned purchase must be verified. All cryptocurrency date entries are vetted for legitimacy. This job is done by the network of computers that run the cryptocurrency market.

The transaction that you made is immediately checked for any irregularities and ensures that it is valid. The information that will be checked would be the dollar amount, the time the transaction occurred, and who the participants were.

Once the transaction is deemed accurate. All the information regarding the transaction is stored in the block. There will probably be thousands of transactions just like it.

Hash assignment

The block is then given a hash which is the unique identification code. After that, the block is ready to be added to the blockchain.

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At this point, the block is now publicly available for anyone who wishes to view it. The data that is available is as follows:

Time of the transaction

Where the transaction occurred also referred to as the height. Who relayed or added the block to the blockchain (again there are no names only codes).

What Is A Blockchain Wallet?

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A blockchain wallet functions similarly to your physical wallet. It’s a digital wallet that permits users to manage, transfer, and of course store their cryptocurrency namely bitcoin and ether.

How Does A Blockchain Wallet Work?

Firstly creating an e-wallet with Blockchain Wallet has no charge attached to it. As expected, you don’t have to visit any physical place to do your account setup process. It can all be done online. All that is required for an individual to get in on the action is an email address and password.

Extremely simple right? You will use your email and password to manage the account. Your setup process ends with an automated email being sent to you for account verification.

Now that your account has been verified, your wallet is created and you are issued a blockchain wallet ID. This wallet functions in the same way a bank account would. It has a unique identifying code, just like your bank account number is different from anyone else’s.

Just as you would use internet banking for traditional financial institutions, Blockchain wallet functions similarly. Wallet holders access their e-wallet on the Blockchain website by simply logging in with their login details, i.e. email address and password.
Of course, you can also have access to your blockchain wallet on mobile applications.

Your blockchain wallet online interface will display the following information:

-Current wallet balance for bitcoin and ether tokens. All your recent transaction will be visible so you can keep track of your transactions.

-Cryptocurrency balance. You can see the value of your bitcoin and ether coins in your local currency or the fiat. Of course, this information is always available.

Are There Any Fees For Using A Blockchain Wallet?

There is no fee for setting up the account. However, there are transactional fees.

Bank transfer of bitcoin incurs a .25% fee. However, you have to wait a few days for access. If you use your debit or credit card, you will have immediate access but expect a 3% fee.

You should also know your fee for transactions is not standard with a blockchain wallet. The fees are dynamic which means it changes depending on the transaction. Factors that affect how much you pay are listed below:

Transaction Size –
How many bitcoins or ether coins you want to transfer.

Network condition-
The network can only handle a finite amount of transactions. As such when you use your blockchain wallet may affect how much you pay. Miners typically process higher fee transactions first.

Blockchain explained makes the cryptocurrency market clearer. You know exactly what will happen with your cryptocurrency transaction. Knowing exactly how a system works always gives users a sense of ease when transacting. If you are an avid investor or trader, you should not shy away from the cryptocurrency market.

It has been making magnificent strides in recent times. More and more people are using in for transactions and it is being accepted by more merchants all over the world. As such we encourage you to educate yourself and venture forth bravely!

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